Isolux Corsan starts Isolux Infrastructure
Isolux Corsan is a major corporation in the concessions business world-wide, operating in over 30 countries. Today it has announced a reorganisation, concentrating this business in one new company. Isolux Infrastructure thus starts operation with the mission of further increasing the volume of business in this area. Over the last five years its EBITDA has shown a compound annual growth of 70%, turning it into a mainstay of Isolux Corsán’s global performance.
The new Isolux Infrastructure will have a total capex for all the projects in which it is involved, of approximately €7.5 bn. It is a truly global platform for the management and operation of the Isolux Corsan group’s infrastructure projects in three key sectors:
Toll road concession. Isolux Corsán has over 1,600 kilometres under concession agreements in countries such as India (710 km in four concessions), Brazil (680 km), Mexico (155 km in two concessions) and Spain (64 km).
T&D lines. The group operates and manages over 5,200 km of power lines for transmission and distribution in Brazil (3,090 km in five concessions), India (1,600 km) and the USA (605 km).
Photovoltaic solar power. The Group ranks as a leader in the solar PV power-generation market. It has 42 PV power plants in operation with an installed capacity of 168 MW and a generation capacity over 250 GW/h per year of clean energy. The company also has a further 60 MW under construction and a pipeline of 900 MW in southern Europe, Latin America, India and the USA.
Isolux Infrastructure’s geographical diversification enables it to operate efficiently in emerging economies (India, Brazil, Mexico and Peru) and in consolidated economies (USA, Italy, Spain). This combination between developing and mature markets endows the new company with enormous versatility, so that it can respond immediately to the latest market conditions wherever they impact. Its core businesses (power generation, power transport & distribution, overland-road infrastructures) have exciting upside in both emerging and consolidated economies. In the emerging economies, growth is essential to bridge a long-standing accumulated gap against modern-day requirements. And in the consolidated economies, growth is imperative in response to demand for constant renewal of existing infrastructure.
Thus, the company’s diversification over different kinds of economies and different areas of business minimizes the risks that beset many projects at times of crisis: firstly, because it is unlikely that the macroeconomic factors will be the same in emerging and in developed economies, and secondly, because business diversification give greater visibility for the company’s cash flows, especially when 70% of its revenues come from power lines and PV generation, which are not subject to demand risk.